The nature of strategy

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The nature of strategy
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What is Strategy?

• Strategy as important issues
• Strategy as the relationship with the
  environment
• Strategy as ..the determination of the basic
  long-term goals and objectives of an enterprise
  and the adoption of courses of action and the
  allocation of resources necessary for carrying
  out these goals.

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Strategy refers to

• the scope and long-term direction of an
  organisations activities
• the fit between an organisation's scope and
  direction, its internal resources and its
  external environment
• the values, expectations or ethical positions of
  individuals or groups within the organisation, or
  of stakeholders to the organisation
• the uncertainty and complexity posed by the above

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Mintzbergs five Ps of strategy

• Strategy as a plan
• Strategy as a ploy
• Strategy as a pattern
• Strategy as a position
• Strategy as a perspective

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Deliberate vs Emergent Strategies
The planned strategy
DELIBERATE STRATEGY
REALIZED STRATEGY
INTENDED STRATEGY
UNREALIZED STRATEGY
EMERGENT STRATEGY
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Competitive advantage (M. Porter)
The threat of new entrants
The power of sellers
The power of buyers
Inter-firm Rivalry
The threat of new technology
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Competitive Strategies and the role of technology

• Generic strategies
• First Mover advantages
• Strategic response
• Appropriability and sustainability
• Exploitation approaches

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Generic Strategies (1) - Porters model
Differ-entiation
Low cost
Competitive Advantage
Broad target
Cost leadership
Differentiation
Competitive scope
Narrow target
Cost focus
Differentiation focus
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Generic strategies 2 - Ansoffs matrix
Products
Old
New
Old
Product development
Market penetration
Markets
Market development
Diversification
New
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Miles Snow generic strategies

• Prospectors - a focus on product innovation and
  market opportunities - emphasise creativity over
  efficiency
• Defenders - a focus on improving the efficiency
  of existing operations - needs a strong cost
  orientation

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Miles Snow generic strategies (contd)

• Reactors - lack any consistent strategy - not
  proactive and respond only to the severest
  external pressures
• Analysers - using different market strategies in
  different sectors - possibly second or late-movers